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October 6, 2026 · Guides

RBI Approvals and Licences for NBFCs and Fintech Businesses

Businesses that lend, hold customer money or process payments in India usually need approval from the Reserve Bank of India. A non-banking financial company must hold a Certificate of Registration from the RBI before it starts business. Payment and wallet businesses need separate RBI authorisations.

Why it matters

Operating without the right approval is a violation and can lead to penalties. Banks, investors and partners also ask for the certificate during due diligence. Under the RBI Act, no company can carry on the business of a non-banking financial institution without that certificate.

Which approval fits which business

Key points

  • Applicants must meet a minimum net owned fund. The RBI has set the general NBFC minimum at Rs. 10 crore from 1 October 2022, with some categories higher. Existing NBFCs have until 31 March 2027 to reach it.
  • Digital lenders have to follow the RBI’s digital lending guidelines, such as direct disbursal to borrowers and clear disclosure of costs.
  • Approval is not a one-time task. Registered NBFCs have ongoing reporting and filings; see our NBFC compliance service.

Common mistakes

  • Starting to lend through an app before the licence is in place.
  • Choosing the wrong category, then discovering the model does not fit.
  • Under-estimating capital requirements.
  • Ignoring compliance after the certificate arrives.

Related guides: MCA and ROC, DPIIT recognition, MSME classification

FAQs

Does every lending business need RBI registration?

Companies carrying on non-banking financial business generally do. Whether your model qualifies depends on your activity, so get it reviewed first.

Is a payment aggregator licence the same as an NBFC licence?

No. They are separate authorisations for different activities.

Is the net owned fund requirement fixed?

It varies by category and the RBI can revise it, so check current RBI directions before applying.

Planning a lending or payments business? Talk to a Taxhint expert to pick the right licence.